SPS Loan Resolution Programs

Every call to SPS is answered by an experienced representative who is prepared to review your individual circumstances. Based on your intention with the property and ability to pay, the Loan Servicing Representative will propose one of the following customized options to assist you:

  • Repayment plan, up to twelve months, to repay all past due amounts and bring your account current.
  • Fresh-start repayment plan, generally three to six months, to allow you to stay in your home while making payment arrangements, such as refinancing, selling your home, or liquidating assets to reinstate your mortgage.
  • Loan modification to restructure the debt through change of interest rate and/or term of the debt.

What is a Modification?

The goal of a modification is to bring your loan current and reduce your monthly mortgage payment to an affordable and sustainable amount. This may be accomplished by adjusting the interest rate and/or the term (number of years) of the loan. Not all loans can be modified. We’ll determine eligibility when you call us to discuss your financial situation.

Eligibility Requirements

The following are required to qualify for a SPS modification:

  • You must be experiencing a financial hardship, such as income reduction, that has caused the default on your loan, or default is imminent
  • The reduced monthly payment must pass a Net Present Value (NPV) test to ensure that modification is the best outcome for the owner of your loan

Please call us to discuss your situation and the programs that may be available to you. Before calling, please gather the following information and have this ready. You may also enter your financial information online.

  • Income (monthly gross and take home pay)
  • Checking and Savings Account balances
  • Other assets (boat, cars, personal property)
  • Expenses (monthly household expenses)
  • Other Expenses (auto loans, credit card payments, etc.)

To speak to a Loan Representative and determine your eligibility, call us at 1-888-818-6032. We’re here to assist you during the following hours:

  • Monday through Thursday, 8 AM to 10 PM ET
  • Friday, 8 AM to 7 PM ET
  • Saturday, 9 AM to 1 PM ET

Required Documentation

After you call us and we determine your eligibility, you will be asked to provide the following documentation for verification purposes:

  • The two most recent pay stubs or income documentation for each wage earner on the Note.
  • Documentation for any non-wage income in the household such as rental income, pension, social security, etc. Please provide documentation for child support or alimony only if you want this income considered in the decision.
  • A letter documenting your current financial hardship.

Mail your documentation to:
Select Portfolio Servicing
PO Box 65250
Salt Lake City, UT  84165-0250

PLEASE NOTE: Additional documentation may be required depending on the program you qualify for or requirements from the owner of your loan. If additional items are needed, we will provide that information when you call us.

How the Process Works

Once we have received all the required documentation, it may take us up to 30 days to reach a decision and send you notification of that decision. If approved a trial period may be needed to show that you can afford the new monthly payment. You will be sent a Trial Modification agreement that outlines the amount and dates that the trial period payments are due. To begin the Trial, you must send us the first payment using one of the methods indicated in the agreement, and fax or mail us a copy of the signed agreement.

It is important that you make all trial period payments on time! If you fail to complete the trial period plan, we may start or proceed with legal action against the property. Additional programs may still be available at this time and you may need to consider options that involve leaving your home. If you are interested in more information on short sale or deed-in-lieu of foreclosure, please contact us at 1-888-818-6032.

Once you have completed the trial period, we will send you a Modification Agreement that defines the changes we are making to your loan. You must sign and return this agreement before it can become permanent. Your new monthly payment will be calculated using the following steps:

  1. Capitalize the past due interest and servicing advances on the loan. Capitalize means we add these amounts to the principal balance of your loan.
  2. Reduce the interest rate. The rate may not change based on your current rate and/or restrictions from the owner of your loan.
  3. Extend the term of your loan. The maturity date is the day the last payment is due on your loan. This date may be extended further into the future. However, in some cases, we may not be able to extend this date and instead will create a balloon payment that is due on the maturity date indicated in your Modification Agreement.
  4. Forbear principal. Principal forbearance reduces the amount of your mortgage that accrues interest. This non-interest bearing amount is still owed and must be paid at the earlier of maturity or payoff.

These steps may change depending on requirements from the owner of your loan.

  • Short sale where the proceeds from the sale of the property are less than the total amount owed. Select Portfolio Servicing may be able to approve a short sale with a total forgiveness of debt.

What is a Short Sale?

The goal of a short sale is to help you avoid foreclosure if your monthly payments are no longer affordable or you cannot remain in your home for other reasons. In a short sale, you sell your home for less than the amount you owe.

Eligibility Requirements

You may be eligible for a short sale, if:

  • You are experiencing a financial hardship, such as job loss, divorce or another reason that has caused the default on your loan, or default is imminent
  • You owe more than your home is worth

To speak to a Loan Representative and determine your eligibility, call us at 1-888-818-6032. We’re here to assist you during the following hours:

  • Monday through Thursday, 8 AM to 10 PM ET
  • Friday, 8 AM to 7 PM ET
  • Saturday, 9 AM to 1 PM ET

Required Documentation

After you call us and we determine your eligibility, you will be asked to provide the following documentation:

  • A letter documenting your current financial hardship.
  • A copy of the current listing agreement.
  • If there is an offer pending on the home, a copy of the purchase contract and the HUD-1 Settlement Statement signed by all parties.

Email your documentation to shortsale@spservicing.com

Or Fax to 801-270-7833

PLEASE NOTE: Additional documentation may be required depending on the program you qualify for or requirements from the owner of your loan. If additional items are needed, we will provide that information when you call us.

How the Process Works

Marketing

If you decide that a short sale is the right option for you, we recommend that you work with a licensed real estate agent who has experience with short sales. If you do not currently have an agent, you can contact one of our Loan Representatives and they can provide information on agents in your area. While the property is being marketed, we may be able to suspend any current or pending legal action against the property by placing you on a temporary forbearance plan.

Purchase Offer

Once you have received a purchase offer, your agent will submit the offer to us. An interior valuation of your property may be necessary as part of this process. A representative will contact you to schedule a time to complete the valuation. It may also be necessary during this time for you or your agent to contact any additional lien holders and negotiate short sales on those liens. We will review the offer, including any additional lien holder approvals, and provide a decision typically within 30 days. The decision may include a counteroffer of the terms in the offer submitted for approval.

Approval

Once you are approved for a short sale, we will issue a letter acknowledging the approval, any terms and/or conditions and the amount that will be required to consider your loan paid in full. A short sale will be reported on your credit and may have a negative effect on your credit score. It is not uncommon for offers to be withdrawn up until closing, so we encourage you to continue marketing the property.

If you have additional questions about the short sale process or other non-home retention options, please contact one of our Loan Representatives at 1-888-818-6032.

  • Deed-in-lieu of foreclosure, which is a voluntary transfer of ownership in full satisfaction of the total amount due, even if the property is worth less than the balance owed. Several contingencies apply to DIL offers, such as a clear title and good condition of the property.

Qualifying for individual programs may be dependant upon allowances and requirements as established by investors or portfolio insurers.

To speak to a Loan Servicing Representative, please call 1-888-818-6032.

SPS Loan Servicing Representatives are trained to provide loss mitigation options, free of cost, to our customers. You may also contact a HUD approved counselor for additional assistance from a non-affiliated third party at 1-800-569-4287.